VOTE NO MORE BT's

BY John Foss


Vote NO on the BED  $13.6 million Revenue Bond Question #1 on June 28, 2011

FACT CHECK:   Smart Meters project includes major elements that BED previously asserted are not justified and/or are not wanted by BED customers. 

1.  Feb 8, 2007: BED formally declines to participate in the Vermont Public Service Time Based Rates Standard program because:   “…only 48 out of 20,000 (BED) customers chose to be served under a time based rate…”  (Page 3, BED footnote #5) http://psb.vermont.gov/sites/psb/files/projects/epact2005/SmartMeteringMemoReEPAct2005_Determination.pdf

2. Dec 13, 2010: “…BED’s conclusion upon completion of the business case analysis … was to not move forward with an AMI (Advanced Meter Infrastructure) deployment…”    (Pdf page 15)  http://applleslegacy.org/images/PSB_Docket_7307_BED_Smart_Meter_Smart_Grid_Investigation_12-13-2010.pdf

3. Dec 13, 2010” “… system wide deployment to all (rate) classes was not justified…”  but   ”…commercial only deployment …(was justified and) …would cost an NVP of (only) $ 1.7 million…” (Pdf page 15) http://applleslegacy.org/images/PSB_Docket_7307_BED_Smart_Meter_Smart_Grid_Investigation_12-13-2010.pdf

4.  Jun 14, 2011: Disturbingly, the previously rejected and unwanted project elements are now  cornerstones of a new BED project benefits statements. (BFP Page 4a) http://www.burlingtonfreepress.com/article/20110614/OPINION05/106140312/BED-ballot-items-offer-reliability-affordability 

THE POINT:  Net Electric Rates for BED Customers will go UP, not down, to pay off the Smart Meter project debt.  Furthermore, system reliability is uncertain because the major elements of the project are admitted by BED to be EXPERIMENTAL.

·         BED wisely does not attempt to justify the economics of the Smart Meter project on its’ own merits or on the basis of productivity improvements.   It’s an experiment (ie: it can fail on some or all of the critical project elements.   Voters remember BT’s well intentioned experiments – cost  to date: $ 50+ million in losses.

·          Because Smart Meters do not reduce costs or increase productivity, BED must raise electric service rates to create new revenues needed for BED to pay off principle and interest on the new $ 13.6 million Revenue Bonds (debt). 

·         Payback of the principle and interest for the BED loans, used  to pay equity “investment” to Velco, will also require BED to raise electric rates. 

·         And, Velco’s payment to BED of the claimed 12.5% annual return from that “investment,” requires Velco to raise its infrastructure cost basis charged (ultimately) to BED.  BED will be forced to raise electric rates to pay the higher cost.  Only then can Velco  “receive”  the additional “revenue” Velco needs to pay the 12.5% dividend to BED.  (ie: the BED customers’ left pocket pays the BED customers’ right pocket)

Voters should reject BED’s bond request (increased debt) because there are serious defects in the project plan.